The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses $ 18,000 230,000 360,000 9,000 Total current assets Property and equipment, net 617,000 900,000 Total assets $1,517,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 11% $ 270,000 360,000 630,000 Total liabilities Stockholders' equity: Common stock, $5 par value Retained earnings $ 170,000 717,000 Total stockholders' equity 887,000 Total liabilities and stockholders' equity $1,517,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $2,240,000 Cost of goods sold 1,240,000 Gross margin Selling and administrative expenses 1,000,000 600,000 Net operating income Interest expense 400,000 39,600 Net income before taxes Income taxes (30%) 360,400 108,120 Net income $ 252,280 Account balances at the beginning of the year were: accounts receivable, $210,000; and inventory, $260,000. All sales were on account. Assets at the beginning of the year totaled $1,070,000, and the stockholders' equity totaled $635,000. Required: Compute the following: 1. Gross margin percentage. (Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) Gross margin percentage % 2. Net profit margin percentage. (Round your answer to the nearest whole percentage place (i.e., 0.1234 should be entered as 12%).) Net profit margin percentage % 3. Return on total assets. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) Return on total assets % 4. Return on equity. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) Return on equity % 5. Was financial leverage positive or negative for the year? Positive Negative